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New York Data Center Market Size (2024 - 2029)

The New York data center market is experiencing significant growth, driven by increased leasing activities that are filling vacant spaces across the city. The emergence of new market players and the development of a sub-market in Rockland County are contributing to this expansion. The market's growth is further fueled by the continuous development in carrier hotels and the demand from content, carrier, and technology renters. As sectors such as healthcare, financial services, and technology continue to expand, the market is poised for further construction and development, enhancing its connectivity and service offerings in proximity to New York City's financial and population centers.

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Market Size of New York Data Center Industry

New York Data Center Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2018 - 2022
CAGR (2024 - 2030) 9.30 %
Market Concentration Medium

Major Players

New York Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

New York Data Center Market Analysis

The New York Data Center Market is expected to register a CAGR of 9.30% during the forecast period.

The New York data center market is going through a robust rebound, as in recent years, more data center leasing has progressively taken over vacant spaces in the city. 

  • The city has lately seen new market players and development in a new sub-market nearby Rockland County in New York.
  • According to research published by JJL, continuous edge growth, and development in carrier hotels amongst content, carrier, and technology renter base is fueling the market growth in New York. 
  • Additionally, the city continues to see stable increases in healthcare, financial services, as well as technology and is expected to be back in constructing mode soon as greater deals shape down the already accessible inventory of data centers in the city.
  • With engagement ongoing apace, the New York data center market continues to grow at a stable pace, with sustained services directing the connectivity center that has developed nearby the financial and population center of New York City.

New York Data Center Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.

The New York data center market is segmented by DC size (small, medium, large, massive, and mega), tier type (tier 1&2, tier 3, and tier 4), absorption (utilized (colocation type (retail, wholesale, and hyperscale)), end-user (cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce, and end-user industries), and non-utilized).

The market sizes and forecasts are provided in terms of value (MW) for all the above segments.

DC Size
Small
Medium
Large
Massive
Mega
Tier Type
Tier 1 & 2
Tier 3
Tier 4
Absorption
Utilized
Colocation Type
Retail
Wholesale
Hyperscale
End-User
Cloud & IT
Telecom
Media & Entertainment
Government
BFSI
Manufacturing
E-Commerce
Other End-Users
Non-Utilized
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New York Data Center Market Size Summary

The New York data center market is experiencing a significant resurgence, driven by increased leasing activities that have filled previously vacant spaces. The emergence of new market players and the development of a sub-market in Rockland County are notable trends. The market's growth is further fueled by advancements in edge computing and the expansion of carrier hotels, which cater to a diverse renter base including content, carrier, and technology companies. The city's data center sector is benefiting from stable growth in healthcare, financial services, and technology sectors, with expectations of a return to construction mode as demand continues to shape the available inventory. The connectivity center, strategically located near New York City's financial and population hubs, is a key driver of this growth.

The demand for Tier-III data centers, known for their high reliability and security, is on the rise, particularly among larger enterprises and sectors such as law enforcement, healthcare, and financial services. These facilities offer superior uptime and redundancy, making them a preferred choice for organizations seeking dependable service. The banking, financial services, and insurance (BFSI) sector's digital transformation, fueled by the proliferation of digital payments and fintech innovations like buy now pay later (BNPL), is generating substantial data, thereby increasing the demand for data center solutions. Despite the high costs associated with operating in New York City, the development of a new sub-market in Rockland County is providing a cost-effective alternative for data center operators. This area is witnessing expansions and new constructions, such as those by DataBank and ColoHouse, to accommodate the growing demand for data storage and processing capabilities.

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New York Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 DC Size

      1. 1.1.1 Small

      2. 1.1.2 Medium

      3. 1.1.3 Large

      4. 1.1.4 Massive

      5. 1.1.5 Mega

    2. 1.2 Tier Type

      1. 1.2.1 Tier 1 & 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 Absorption

      1. 1.3.1 Utilized

        1. 1.3.1.1 Colocation Type

          1. 1.3.1.1.1 Retail

          2. 1.3.1.1.2 Wholesale

          3. 1.3.1.1.3 Hyperscale

        2. 1.3.1.2 End-User

          1. 1.3.1.2.1 Cloud & IT

          2. 1.3.1.2.2 Telecom

          3. 1.3.1.2.3 Media & Entertainment

          4. 1.3.1.2.4 Government

          5. 1.3.1.2.5 BFSI

          6. 1.3.1.2.6 Manufacturing

          7. 1.3.1.2.7 E-Commerce

          8. 1.3.1.2.8 Other End-Users

      2. 1.3.2 Non-Utilized

New York Data Center Market Size FAQs

The New York Data Center Market is projected to register a CAGR of 9.30% during the forecast period (2024-2030)

Digital Realty Trust, Inc., DataBank, CoreSite, CyrusOne and Equinix Inc. are the major companies operating in the New York Data Center Market.

New York Data Center Market Report Snapshots

New York Data Center MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2024 - 2030)